Consumer Price Index Malaysia September 2018

The Consumer Price Index (CPI) grew at a slower pace of 0.3 per cent in September 2018 due to the impact of RON95 fuel prices which remained at RM2.20 from March 2018 to September 2018 as compared to the same period in 2017. Although Sales & Service Tax (SST ) was re-instated beginning September 1, 2018, in terms of the index, it did not show significant change as compared to a year ago.

The overall index for Food & Non-Alcoholic Beverages which accounted 29.5 per cent in the CPI weights increased 0.5 per cent in September 2018. This was attributed by the food sub-group index of Fish & Seafood of 0.4 per cent. Meanwhile, the index for sub-group Meat and Sugar, Jam, Honey, Chocolate & Confectionery decreased 2.3 per cent respectively, followed by index for sub-groups Milk & Eggs (-1.3 per cent), Vegetables (-1.2 per cent) and Oils & Fats (-0.8 per cent). The decrease was due to the index of goods which dropped in most states such as Garlic (-20.4 per cent), Watermelons (-4.5 per cent), Chicken (-3.9 per cent), White Sugar (-3.1 per cent), Hardtail Scad (Fish) (-2.5 percent), Dried Chilly (-2.4 per cent), Choy Sum (-2.0 per cent), Prawns (-1.0 per cent) and Indian Mackerel (Fish) (-0.9 per cent). Meanwhile, the index for Food Away From Home increased 2.6 per cent in September 2018 as against September 2017.

In terms of overall CPI, three states surpassed the national CPI rate of 0.3 per cent recorded in September 2018 as compared to September 2017. The states were Wilayah Persekutuan Kuala Lumpur (+0.9 per cent), Negeri Sembilan (+0.7 per cent) and Selangor & Wilayah Persekutuan Putrajaya (+0.4 per cent). Meanwhile, Pulau Pinang showed the same rate as the national CPI.

The increase in the index for Food & Non-Alcoholic Beverages was reflected in most states in Malaysia. Four states recorded higher increases for Food & Non-Alcoholic Beverages index above the national index level (+0.5 per cent) in September 2018 as compared to the corresponding month in 2017. The index for Food & Non-Alcoholic Beverages rose 3.0 per cent in Wilayah Persekutuan Kuala Lumpur, followed by Sarawak (+0.8 per cent) and 0.7 per cent in Negeri Sembilan and Selangor & Wilayah Persekutuan Putrajaya respectively. (Chart 2)

Core inflation increased 0.3 per cent in September 2018, as compared to the same month of the previous year. Among the major groups which influenced the higher core rate were price increases for Housing, Water, Electricity, Gas & Other Fuels (+2.3 per cent), Education and Restaurants & Hotels (+1.1 per cent) respectively and Food & Non-Alcoholic Beverages (+1.0 per cent). Core inflation, which excludes most volatile items of fresh food, as well as administered prices of goods and services recorded changes ranging from -0.2 per cent to 2.2 per cent for the period January to September 2018 as compared with the same period of the previous year. (Table 2)